Latest News
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US lawmakers propose to end 12% excise duty on heavy-duty vehicles
Two U.S. Senators proposed Tuesday to 'end' the 12% federal excise tax for heavy-duty trucks. They said that this could increase sales of cleaner, newer models. Republican Senator Todd Young, and Democrat Senator Angela Alsobrooks, noted that the tax "adds between $15,000 and $30,000 to the price of a new heavy truck, trailer or semi-trailer chassis and tractor" and encourages the continued use of older vehicles. Engines from before 2010 are found in about?one fifth of the largest trucks on the roads. Alsobrooks stated that the bill would support "a modern trucking sector, allowing the adoption of newer trucks which are safer and more fuel efficient." The tax generates more than $6 billion per year that will be used to?build and repair roads. Congress has been trying to find new sources of revenue for road repairs. Diesel costs for truckers have also risen sharply since the Iran war began. (Reporting and editing by Cynthia Osterman; David Shepardson)
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The Cerrejon coalmine in Colombia temporarily suspends its operations due to road blocks
Glencore's Cerrejon Mine in Colombia is one of the world's largest open-pit coal mines. It has been forced to suspend its operations due to blockades. It said that the site had halted all mining, rail, and port operations on Monday because of a blockade which began 'May 23' and disrupted the transportation of essential supplies. Cerrejon added that the group leading the blockade will meet Thursday with 'the vice minister of government for social dialogue. In a Monday statement, Cerrejon stated that the gradual resumption will depend on whether there are no new obstructions, interruptions or impacts to mobility along the rail line and any other infrastructure related to the operation. The report did not mention the'reason behind blockades. Since years, communities around the mine have used blockades as a protest against what they claim is 'harsh pollution which has affected their health and environment. The Cerrejon mine includes a large mining area, a '150-kilometer railway line and a port located on the Caribbean coast of Colombia. Reporting by Nelson Bocanegra, Luis Jaime Acosta and Daina Beth Solon
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US LNG exports drop in May due to maintenance; Asia's share rises
The preliminary data of financial firm LSEG shows that U.S. liquefied gas exports dropped to 10.2 million metric tonnes (MT) in the month of May, which is the?lowest amount this year excluding January's shorter months, due to seasonal maintenance. The decline was primarily due to planned outages at several export plants as operators completed spring maintenance, after delaying earlier work in the year. Cheniere Energy, along with some U.S.-based exporters, had delayed maintenance in March in order to maximize shipments into Asia. This was due to supply disruptions caused by reduced Qatari supplies that resulted in almost 20% loss in global volumes. Cameron LNG, in Louisiana, reduced its feedgas demand due to annual maintenance of Train 2 and ongoing pipeline work. Golden Pass LNG, in Texas, saw a near-zero intake of gas for several days as it continued commissioning the plant. Cheniere's Sabine Pass in Louisiana also reported a sharp decline in feedgas flow in mid-May because of maintenance. Despite lower overall exports, shipments into Asia reached a record high. According to LSEG data, the U.S. shipped 3.68 MT of total shipments to?Asia, which is just under 36%. The rise was due to a pricing arbitrage. Asia's JKM benchmark traded at a higher price than Europe's TTF. The Asian spot LNG price fell slightly but remained high in May, with JKM at an average of $17.75 for a million British thermal unit (mmBtu), compared to $17.92 per MMBtu in April. The benchmark was roughly 10% higher than Europe's TTF which averaged $16.11 per million British thermal units (mmBtu) in May, up from $15.34. Europe was the top destination for U.S. exports of LNG, with 5.13 MT or slightly more than 50%. LSEG ship tracking data shows that this was down from 6,14?MT or almost 56% in April. According to LSEG data, exports to Latin America reached?600,000.00 tons or?6% of all volumes. This is the highest level seen since the U.S./Israeli war against Iran. According to LSEG data, exports from the U.S. to?Latin America have decreased since the beginning of the war. LSEG data shows that Egypt has reduced its monthly purchases to about 300,000 tonnes, or roughly half of its usual 600,000 tonnes. Two cargoes have been delivered to African countries while just 3% of the?U.S. At the end of last month, LNG cargoes were still on the water. This indicates that spot buyers have access to these cargoes. Despite lower U.S. output of LNG, preliminary LSEG results show that global LNG exports remained stable in May at 33.8 MT, slightly less than the 33.99 MT exported in April, and down from the 35.66 MT exported in March.
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Spain records record high temperatures at sea for May
The port authority of Spain reported record sea temperatures for the month of May along most of the?coastline. This comes as the UN predicts a moderate to strong El Nino that could cause global temperatures to rise in the coming months. According to the Spanish port authority, six of the 14 buoys on the coast and 12 of the 15 buoys in deep water recorded their highest temperatures ever for the month May. Ruben del campo, spokesperson of Spanish weather agency AEMET, stated that the phenomenon was caused by human-caused climate changes. "Over the past decade, we've had just seven record-breaking cold days, while we've had 221 record hot days," del Campo said. He added that this was due to a?"constant" rise in global temperatures. Del Campo said that the'record-breaking sea temperatures in May were not related to El Nino. El Nino is expected to peak in November and October.
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US to invest $8 billion in Azerbaijan energy, according to US officials
Caleb Orr, Assistant Secretary of State for the United States, said that a U.S.-Azerbaijan delegation signed 'commercial agreements' worth more than $8 billion and Washington will invest in Azerbaijan's energy sector. Orr said that the United States wanted to play a bigger role in Azerbaijan’s energy infrastructure projects. Orr responded to a query by saying, "We plan concrete investments in the?energy?sector." He said ExxonMobil was still an important partner for Azerbaijan, after signing a Memorandum of Understanding on new exploration possibilities at the Baku Energy Week?last year. Washington also supports Chevron's new exploration agreement signed during this year’s event. Orr stated that "we expect to be able to assist Azerbaijan in growing its role as the central hub of the Middle Corridor, for energy transit to Europe and the rest of the world." The Economic Dialogue was held in accordance with a Strategic Partnership Charter?signed by U.S. Vice-President?JDVance during his visit to Baku, Azerbaijan, this February. Mikayil Jabbarov, Azerbaijan's Economy Minister, said that Azerbaijan, the United States, and Azerbaijan had identified energy, investment and regional connectivity as key areas of cooperation. (Reporting and editing by Alistair Bell, Nailia Bagirova)
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NEOM, a Saudi company, offers a niche market for Gulf importers
Salam Studio & Stores, a distributor based in Qatar, had gone weeks without receiving its Red 'Bull shipments. This prompted it to try a 'little-used route. In the fourth month of conflict, and despite the effective closure of 'the Strait of Hormuz', its products were scattered across India and Sri Lanka ports, and Gulf hubs that it usually relies on were hit by Iranian fire, and faced capacity constraints. Salam, fearful of losing market shares, chose an untested option: shipping cargo via the Port of NEOM in Saudi Arabia, a Red Sea facility that is now promoting itself as a quicker alternative to traditional trade routes. This demonstrates the extent to which some Gulf companies are willing to go in order to maintain the flow of goods, as the war disrupts regional supply chains. Shipping data suggests that such workarounds are niche and only offer speed for certain cargoes, not a solution for wider supply disruptions. FASTER, BUT MUCH CHEAPER Adam Mulla, the director of distribution at Salam, said that the company initially ordered a single truckload in order to test out the route from Europe to Gulf. This corridor spans both land and sea legs. He said that it took us less time than usual, but the costs were much higher. The shipment arrived in 22 days - almost half the time it usually takes to get from Europe to the Gulf. The company was so encouraged that it ordered 15 additional truckloads. It paid about $10,000 for each load compared to $2,500 per load before the war. Mulla explained that the extra costs were due to higher fuel and insurance prices, rather than port charges. NEOM was the brainchild Saudi Crown Prince Mohammed Bin Salman. It was first unveiled as a futuristic city project a decade before it had to be scaled back due to cost overruns. The port has been repositioned to be part of a more efficient trading corridor. NICHE SOLUTION "Europe-Egypt-NEOM-GCC: your faster route," the port said in a post on its official LinkedIn page, describing a mix of sea crossings and trucking aimed at speeding goods into the six Gulf Cooperation Council (GCC) markets, ?and adding that importers from several European countries were already using it. NEOM didn't provide any details or respond to a?request for comment. However, shipping data shows that its role is still limited. According to Kpler, data firm, the majority of traffic in the port is made up by roll-on/roll off vessels. The port had no container activity until April. Over 95% of the shipping activity is concentrated on just two vessels. "NEOM?remains an niche RoRo port with stable, but limited activity," Kpler added, adding that there had been no signs of a surge in rerouting since the Iran War began. Since late February, Iran has prevented 'nearly all' shipping into and out of the Gulf. This has disrupted a fifth of global oil and gas flow and left hundreds of vessels unable transit the Strait of Hormuz. Salam was attracted to NEOM by the congestion in Jeddah, Saudi Arabia's major Red Sea port. Mulla stated that "they chose NEOM as it has no traffic."
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UN warns that funding cuts may worsen Rohingya crisis
The U.N. Refugee Agency warned on Tuesday that declining funding for humanitarian aid 'could significantly worsen the conditions of around 1.2 millions Rohingya refugees?in Bangladesh nearly nine years after their departure from Myanmar as aid groups struggle to maintain essential services. The United Nations and their partners are struggling to support one of the largest refugee populations in the world as 'global crises' multiply and donor budgets tighten. UNHCR says that the pressure is increasing due to the arrival of 150,000 additional Rohingya Muslims who have fled renewed violence in Myanmar since early 2024. In recent years, funding for international aid has been cut by the U.S. as well as some European countries. The U.N. launched a $710.5-million appeal last month to finance food, shelters, healthcare, education, and protection services. The appeal, which is 26% less than last year, remains at only 60% funding, highlighting the mounting financial pressure. The funding drive comes before the ninth anniversary?of the August 2017 military crackdown that forced 750,000 Rohingya to flee into muslim-majority Bangladesh. UNHCR spokesperson Babar Baloch stated that "for decades, Rohingyas have been forced from their homes in Myanmar’s Rakhine State. Bangladesh has provided protection to successive migrations of refugees since late 1970s." The Rohingya camps remain bleak. The settlements are overcrowded, fragile and constantly threatened by extreme weather conditions, disease, and insecurity. Limited access to basic services further compounds the hardships. Refugees are largely dependent on food aid due to their lack of education and employment. The most vulnerable people, such as women, children, elderly people and those with disabilities, face the highest risks. The conflict in Myanmar continues, and the prospects for safe return are slim. Growing desperation has led some Rohingya refugees to embark on perilous sea voyages to Malaysia or Indonesia. Nearly 900 Rohingya were reported as missing or deceased by 2025, which was the deadliest year ever recorded. "We want the world to remember that we still suffer, year after, year, every day. "We see no clear future and no way of returning home," said Mohammed Jashim from Bangladesh, 35-year-old father of three. UNHCR called upon donors to continue supporting Rohingya refugee until safe returns could be made. (Reporting and editing by Hugh Lawson; Ruma Paul is the reporter)
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ADNOC resumes exports of naphtha via an alternative route to Oman, traders claim
The price of Asia's naphtha has fallen to its lowest level since early March, as Abu Dhabi National Oil Co (ADNOC), resumed exports via the Omani Port of Sohar in May, according to traders. This could provide an alternative supply route, which would ease the supply crisis caused by the U.S. and Israeli war against Iran. ADNOC stopped exports of petrochemical feedstock of around 1 million metric tonnes per month from its Ruwais Refinery in April, after the war curtailed shipping via the Strait of Hormuz. Last month, the United Arab Emirates producer resumed exports by using tankers to transport cargoes to the refinery in the Gulf and then transferring them onto other tankers in the Sohar port to export to Asia. This process is known as ship to ship transfers. ADNOC’s?workaround' provides an alternative route for buyers who are reluctant to risk their ships crossing the strait. This allows more oil products?to reach Asia. Shipping data showed that two of these tankers, Minerva Pisces, and Torm Gwyneth loaded naphtha around May 30, from ADNOC controlled?vessels, and are headed to Asia. The traders said that more tankers could have loaded ADNOC Naphtha through Sohar. However, shipping data may not reflect all vessel movements. ADNOC's spokesperson stated that "we do not comment on our vessel's position, movement or routing as a policy." NAPHTHA PRICES TUMBLE Prices for Naphtha In?Asia, the price of a metric tonne soared to $1,300 and the margin for refining increased to $600 In March, the price of Brent crude rose to a new record high of $467 per ton after the war cut off supplies from the Gulf region. This region accounts for over half (50%) of Asian imports. On Tuesday, the benchmark naphtha prices in Asia for the second half of the month of July dropped to $788 per ton. The margin fell to $84 per ton. The price of naphtha is also being affected by the destruction of demand, as an insufficient supply of feedstock leads to widespread shutdowns and force majeures at petrochemical plants across Asia. The International Energy Agency predicts that global naphtha consumption will fall by 80,000 barrels per day this year to 7,136 million bpd. One Indian trader stated that naphtha is unlikely to reach its March peak levels due to the weak demand and market expectations. Reporting by Mohi Nrayan, Editing by Florence Tan & David Goodwin
Oldelval, a company in Argentina, expects Vaca Muerta production to reach 1 million bpd before 2028
Vaca Muerta shale in Argentina is 'on track' to produce 1 million barrels of oil a day by the second quarter of 2028. This was announced on Tuesday by Ricardo Hosel CEO of Oleoductos del Valle, an oil pipeline operator.
Vaca Muerta, a vast shale deposit the size of Belgium, has transformed Argentina into a rapidly growing energy producer. It also raised hopes that it could be a major exporter.
Oldelval 'is responsible for the transport of oil from the Vaca Muerta fields to Argentina's 'export ports' and manages a $1.4billion pipeline that 'connects' the western 'Neuquen basin', the home of Vaca Muerta to the country's Atlantic Coast.
Hosel, at an Argentinean event, said that the country would not face any problems with oil transport capacity by 2031.
The Argentinean President Javier Milei has a strategy to increase Argentina's financial stability by increasing energy exports.
Argentina's Energy Minister said in April that the country could reach a?1,000,000 bpd? in oil production by 2026. The current output is just over 850,000bpd. (Reporting and editing by Eliana Razewski)
(source: Reuters)